renewable energy integration: technological and market design

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Renewable Energy Integration: Technological and Market Design Challenges PSERC Future Grid Webinar February 19, 2013 Shmuel Oren, Duncan Callaway, Anthony Papavasiliou, Johanna Mathieu (UC Berkeley) Timothy Mount, Robert Thomas, Max Zhang (Cornell University) Alejandro Dominguez-Garcia, George Gross (University of Illinois at Urbana/Champaign) A PSERC Future Grid Initiative Progress Report

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Page 1: Renewable Energy Integration: Technological and Market Design

Renewable Energy Integration: Technological and Market Design

Challenges

PSERC Future Grid Webinar February 19, 2013

Shmuel Oren, Duncan Callaway, Anthony Papavasiliou, Johanna Mathieu

(UC Berkeley) Timothy Mount, Robert Thomas, Max Zhang

(Cornell University) Alejandro Dominguez-Garcia, George Gross (University of Illinois at Urbana/Champaign)

A PSERC Future Grid Initiative Progress Report

Page 2: Renewable Energy Integration: Technological and Market Design

PSERC Future Grid Initiative • DOE-funded project entitled "The Future Grid to Enable Sustainable

Energy Systems”(see http://www.pserc.org/research/FutureGrid.aspx)

• Focus of this webinar: Accomplishments in the thrust area “Renewable Energy Integration: Technological and Market Design Challenges”

• Objectives of this thrust area: Explore technological solutions, market design, resource dispatch tools and new planning frameworks for dealing with the uncertainty and variability of intermittent renewable generation resources. Task objectives include: • Develop distributed control paradigms and business models for mobilizing

demand response to mitigate the uncertainty and variability introduced by massive integration of renewable energy resources

• Develop market mechanisms that will incentivize load response and flexibility and correctly price uncertainty (or uncertainty reduction) on the demand and supply side.

• Develop dispatch and planning tools that can explicitly account for uncertainty, variability and flexibility (e.g. storage) in resource optimization and reserves procurement.

• Develop simulation tools that can account for increased uncertainty in verifying system and market performance 2

Page 3: Renewable Energy Integration: Technological and Market Design

Context and Motivation

3

Page 4: Renewable Energy Integration: Technological and Market Design

Uncertainty

4

Page 5: Renewable Energy Integration: Technological and Market Design

Negative Correlation with Load

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Page 6: Renewable Energy Integration: Technological and Market Design

All Rights Reserved to Shmuel Oren

Page 7: Renewable Energy Integration: Technological and Market Design

Conventional Solution

Source: CAISO 7

Page 8: Renewable Energy Integration: Technological and Market Design

I Need a Brain

Source: GE 8

Page 9: Renewable Energy Integration: Technological and Market Design

• Accounting explicitly for uncertainty in operation and planning • Stochastic unit commitment (with endogenous reserves

determination) to support renewable penetration and demand response

• Probabilistic planning and simulation models (accounting for renewables, storage and demand response

• Mobilizing demand response (DR) and a paradigm shift to “load following available supply” provides an economically viable and sustainable path to a renewable low carbon future. • Price responsive load • Energy efficiency • Deferrable loads:

• EV/PHEV • HVAC • Water heaters • Electric space heaters • Refrigeration • Agricultural pumping

9

Thermostatically Controlled Loads (TCLs)

Making the Grid Smarter

Page 10: Renewable Energy Integration: Technological and Market Design

10

Planning and Market Design for Using Dispatchable Loads to Meet Renewable Portfolio

Standards and Emissions Reduction Targets

Direct and Telemetric Coupling of Renewable Energy Resources

with Flexible Loads

Mitigating Renewables Intermittency Through Non-

Disruptive Load Control

Max Zhang, Tim Mount and Bob Thomas Cornell University

George Gross and Alejandro Dominguez-Garcia

with Yannick Degeilh University of Illinois at Urbana-

Champaign

Shmuel Oren with Anthony Papavasiliou

UC Berkeley

Duncan Callaway with Johanna Mathieu and Mark Dyson

UC Berkeley

Probabilistic Simulation Methodology for Evaluating the

Impact of Renewables Intermittency on Operation

and Planning

Today’s Presentations on Future Grid Tasks

Page 11: Renewable Energy Integration: Technological and Market Design

Task 1: Direct and Telemetric Coupling of Renewable Energy Resources with Flexible Loads

Shmuel Oren Anthony Papavasiliou

UC Berkeley

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Page 12: Renewable Energy Integration: Technological and Market Design

Alternative Demand Response Paradigms

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Page 13: Renewable Energy Integration: Technological and Market Design

13

Alternative Demand Response Paradigms

Page 14: Renewable Energy Integration: Technological and Market Design

Evaluation Methodology

• Comparison of alternative approaches to flexible loads mobilization requires explicit consideration of uncertainty for consistent determination of locational reserves.

• Stochastic unit commitment optimization accounts for uncertainty by considering a limited sample of probabilistic wind and contingency scenarios, committing slow reserves early with fast reserves and demand response adjusted after uncertainties are revealed.

• Economic and reliability outcomes are calculated using Monte Carlo simulation with large number of probabilistic scenarios and contingencies

14

Page 15: Renewable Energy Integration: Technological and Market Design

Results and Benefits

• Developed a stochastic optimization method for efficient reserves deployment in an environment with high renewables penetration

• Developed a consistent method for assessing alternative demand response integration strategies (direct coupling vs. market)

• Advanced the state of the art for stochastic unit commitment at practical scale employing High Performance Computing (HPC)

• Study of how computational time for stochastic unit commitment scales with number of processors and solution accuracy

15

Page 16: Renewable Energy Integration: Technological and Market Design

Model Structure

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Page 17: Renewable Energy Integration: Technological and Market Design

Unit Commitment

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Page 18: Renewable Energy Integration: Technological and Market Design

Two Stage Stochastic Unit Commitment

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Page 19: Renewable Energy Integration: Technological and Market Design

Scenario Sample Selection

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Page 20: Renewable Energy Integration: Technological and Market Design

New Scenario Selection Method

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Page 21: Renewable Energy Integration: Technological and Market Design

Wind Modeling and Data Sources

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Page 22: Renewable Energy Integration: Technological and Market Design

Load Variation Represented by Day Types

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Page 23: Renewable Energy Integration: Technological and Market Design

Parallelization and HPC Application

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Page 24: Renewable Energy Integration: Technological and Market Design

California Case Study

• Stochastic Optimization captures nearly 50% of gains under perfect forecasting of load and wind outcomes

• Direct coupling marginally more expensive than a centralized market but reduces load shedding due to better representation of load flexibility

• Transmission constraints can play a significant role in determining cost and resource adequacy

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Page 25: Renewable Energy Integration: Technological and Market Design

Computational Efficiency Study

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Page 26: Renewable Energy Integration: Technological and Market Design

References • Papavasiliou Anthony, Shmuel Oren and Richard O’Neill, “Reserve Requirements for Wind Power

Integration: A Scenario-Based Stochastic Programming Framework”, IEEE Transactions on Power System, Vol 26, No4 (2011), pp. 2197-2206

• Papavasiliou A. and S. S. Oren, ”Integrating Renewable Energy Contracts and Wholesale Dynamic Pricing to Serve Aggregate Flexible Loads” Invited Panel Paper, Proceeding of the IEEE PES GM, Detroit, Michigan, July 24-28, 2011.

• Papavasiliou A. and S. S. Oren “Integration of Contracted Renewable Energy and Spot Market Supply to Serve Flexible Loads”, Proceedings of the 18th World Congress of the International Federation of Automatic Control, August 28 – September 2, 2011, Milano, Italy.

• Papavasiliou A.and S. S. Oren, “Stochastic Modeling of Multi-area Wind Power Production “, Proceedings of PMAPS 2012, Istanbul Turkey, June 10-14, 2012.

• Oren S. S., Invited Panel Paper ” Renewable Energy Integration and the Impact of Carbon Regulation on the Electric Grid “, Proceeding of the IEEE PES GM, San Diego CA, July 22-26, 2012.

• Papavasiliou A., S. S. Oren, ” A Stochastic Unit Commitment Model for Integrating Renewable Supply and Demand Response” Invited Panel Paper, Proceeding of the IEEE PES GM, San Diego, CA, July 24-28, 2012.

• Papavasiliou A., S. S. Oren, “Large-Scale Integration of Deferrable Demand and Renewable Energy Sources in Power Systems”, Accepted for publication in a special issue of the IEEE PES Transaction.

• Papavasiliou A., S. S. Oren, “Multi-Area Stochastic Unit Commitment for High Wind Penetration in a Transmission Constrained Network”, Accepted for publication in Journal of Operations Research.

• Papavasiliou Anthony, Shmuel Oren, Barry Rountree “Applying High Performance Computing to Multi-Area Stochastic Unit Commitment for Renewable Energy Integration”, Submitted to Mathematical Programming (February 2013)

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Page 27: Renewable Energy Integration: Technological and Market Design

Mitigating Renewables Intermittency Through Nondisruptive Load Control

Duncan Callaway Johanna Mathieu

Mark Dyson University of California, Berkeley

Notes: Callaway is the Task leader, [email protected]. Mathieu is currently a postdoctoral scholar in the Power Systems Laboratory at ETH Zurich. Dyson was not

funded by the project, but contributed to the resource assessment.

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Page 28: Renewable Energy Integration: Technological and Market Design

Context

• Renewables integration requires power system flexibility (e.g., managing frequency response and energy imbalances)

• Centralized control of load resources could be a low cost solution: the grid connected resources exist already

• But the costs could be pushed upward by: • Communications & metering infrastructure

requirements (system operators need high quality telemetry data in certain applications)

• Customer payments (if end-use function has to be seriously compromised)

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Page 29: Renewable Energy Integration: Technological and Market Design

Research Goals

• New methods to model and control aggregations of thermostatically-controlled loads (TCLs) that • Reduce communications and

power measurement requirements • Minimize temperature deviations

• Evaluate how different real time communications abilities affect • Ability to accurately estimate local temperature and

ON/OFF state of loads • Controllability of load resources

• Analyze TCL resource potential, costs, and revenue potential associated with TCL control

TCLs

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Page 30: Renewable Energy Integration: Technological and Market Design

Basic Residential TCL Control Architecture

30

• All control occurs within existing TCL temperature deadband

• Use substation SCADA to measure aggregate power consumption

• Estimate states in aggregation model

• Broadcast control signal, possibly via AMI

dispatch instructions

• Loads receive broadcasted control signal and, based on current load temperature, turn ON, OFF or remain in current state

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Page 31: Renewable Energy Integration: Technological and Market Design

Aggregated TCL Model ‘State bin transition model’

ON

OFF

normalized temperature

stat

e

[Similar to that proposed by Lu and Chassin 2004; Lu et al. 2005; Bashash and Fathy 2011; Kundu et al. 2011]

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Page 32: Renewable Energy Integration: Technological and Market Design

Consider thousands of TCLs traveling around a normalized temperature dead-band.

ON

OFF

normalized temperature

stat

e

Aggregated TCL Model ‘State bin transition model’

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Page 33: Renewable Energy Integration: Technological and Market Design

Divide it into discrete temperature intervals.

ON

OFF

normalized temperature

stat

e

Aggregated TCL Model ‘State bin transition model’

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Page 34: Renewable Energy Integration: Technological and Market Design

ON

OFF

normalized temperature

stat

e

Aggregated TCL Model ‘State bin transition model’

Forcing the system: decreasing aggregate power. 34

Page 35: Renewable Energy Integration: Technological and Market Design

ON

OFF

normalized temperature

stat

e

Aggregated TCL Model ‘State bin transition model’

Forcing the system: increasing aggregate power. 35

Page 36: Renewable Energy Integration: Technological and Market Design

Question: How important is real time metering?

36

• Reference case: Meter power and temperature at all controlled loads, error following dispatch signal = 0.6% RMS (smaller is better)

• Case 1: Meter the ON/OFF state at all loads, measure aggregate power at the distribution substation. Result: error = 0.76% RMS

• Case 2: Meter only aggregate power at distribution substation. Result: error = 5% RMS • Note, this error compares favorably to conventional generators

All results assume: • 17 MVA substation load • 15% of load (1,000 TCLs) is controlled • Aggregate power measurements include all loads on substation • Total substation load can be forecasted with 5% average error

on a one minute horizon

Answer: Not important; state estimation works

Page 37: Renewable Energy Integration: Technological and Market Design

How LARGE is the Resource Potential? Estimates for most of California (5 largest utilities) based on Renewable

Energy Certificates and California Energy Commission data.

2012 Resource Duration Curve

2020 Resource Duration Curve,

assuming increased efficiency and 30% of water/space heaters converted to electric

37

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B. 2020 Base Scenario

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Page 38: Renewable Energy Integration: Technological and Market Design

Potential Revenues for Regulation and Load Following (per TCL per year)

*Results depend on the climate zone

Note: cost requires a separate analysis!

Air conditioners* Heat pumps* Combined AC/HP* Water heaters Refrigerators

Regulation

$9-79 $100-170 $160-220

$61 $25

Load Following

$2-9 $9-14

$16-18 $35 $14

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Page 39: Renewable Energy Integration: Technological and Market Design

Uses and Potential Benefits of Results

• Reduced cost to deploy centralized control of loads on distribution circuits • AMI could broadcast control signals • Substation SCADA may be all that is required for real

time measurement • Roadmap for which loads are best for fast

demand response • Electrification of heating has big benefits

• Results lay groundwork for demonstration • Currently in discussion with several load aggregators

to run a pilot

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Page 40: Renewable Energy Integration: Technological and Market Design

References

• Mathieu, J.L.; M.E. Dyson, and D.S. Callaway. Using Residential Electric Loads for Fast Demand Response: The Potential Resource, the Costs, and Policy Recommendations. To appear in the Proceedings of the 2012 ACEEE Summer Study on Energy Efficiency in Buildings, Pacific Grove, CA, August 12-17, 2012.

• Mathieu, J.L.; S. Koch, and D.S. Callaway. State Estimation and Control of Electric Loads to Manage Real-Time Energy Imbalance. IEEE Transactions on Power Systems (in press), 2012.

• Mathieu, J.L.; and D.S. Callaway. State Estimation and Control of Heterogeneous Thermostatically Controlled Loads for Load Following. Proceedings of the 45th Hawaii International Conference on System Sciences (HICSS45), Wailea, Hawaii, January 4-7, 2012.

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Page 41: Renewable Energy Integration: Technological and Market Design

Cornell Research Team: K. Max Zhang

Timothy D. Mount Robert J. Thomas

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Page 42: Renewable Energy Integration: Technological and Market Design

Summary

42

Premises: 1) Need improved methods for evaluating the operations

and planning of a future grid with: a. High penetrations of renewable sources b. Storage and deferrable demand*

2) Establishing public support for the future grid will require that customers see tangible benefits (e.g., lower bills)

* Decouples the purchase of electricity from the delivery of an energy service. Contributions: 1) Developed an integrated multi-scale physical and

economic framework for modeling deferrable demand 2) Evaluated the effects of stochastic renewable sources

and deferrable demand on total system costs and emissions from generating units (to be completed)

Page 43: Renewable Energy Integration: Technological and Market Design

Accomplishments 1) Developed a model for aggregating customers with electric

vehicles to determine the maximum hourly charge limited by the capacity of chargers and commuting patterns

2) Developed a model for aggregating buildings with thermal storage capabilities for cooling limited by the capacities of compressors and the energy stored

3) Used #1 and #2, in addition to stochastic wind generation, as inputs into the SuperOPF, a stochastic form of multi-period Security Constrained Optimal Power Flow (SCOPF)

4) Augmented the SuperOPF by adding emission/damage coefficients to the operating costs of generating units

5) Used #1- 4 to simulate the system effects and costs of using deferrable demand to mitigate the variability of generation from wind sources and reduce emissions (to be completed)

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Page 44: Renewable Energy Integration: Technological and Market Design

Context of the Research:

An Integrated Multi-Scale Framework

44

SuperOPF Costs

PEV charger capacities Commuting Patterns Nodal Capabilities

Ice storage systems Buildings Nodal Capabilities

Stochastic wind at 16 sites

North East Test Network

Page 45: Renewable Energy Integration: Technological and Market Design

70/30 Level I/II 50/50 Level I/II 30/70 Level I/II

• A 20% penetration of commuters are assumed to use PEVs in the NPCC region. • 80% of the PEV load is assigned to valley hours to take advantage of the low prices. • The remaining 20% is assigned to shoulder and peak hours to reduce ramping costs • The Charging Flexibility Constraint (CFC) may restrict PEV charging during the morning

commuting hours Valentine, Temple and Zhang (2011) J. Power Sources

Results I: System Load with “Intelligent” Charging of PEVs under Different

Penetrations of Low and High PEV Charging Rates

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Page 46: Renewable Energy Integration: Technological and Market Design

Results II: Percent Reduction in Wholesale Energy Costs Using “Intelligent”

Charging and Valley-Fill Charging vs. Charging-at-Will

Intelligent Charging

Valley-fill Charging

• Charging-at-Will (i.e., commuters charge their PEVs as soon as they arrive at home) is the baseline. • Intelligent charging results in significant reductions in the costs compared to charging-at-will and

valley-fill charging. • Percentage reductions in the costs with intelligent charging are higher with higher penetrations of

PEVs because more PEVs provide a greater capability for modifying wholesale prices and the system cost of ramping.

Valentine, Temple and Zhang (2011) J. Power Sources 46

Page 47: Renewable Energy Integration: Technological and Market Design

Results III: System Load and System Cost Reductions with Price-Responsive Ice Storage Systems

• The system benefits of aggregating Ice Storage Systems in large commercial and industrial buildings in New York State were evaluated for the NYCA.

• Heuristic methods were used to reduce system costs in a two-settlement wholesale market that accounts for both the steady-state costs and ramping costs of generating units.

• The optimal management of thermal storage significantly reduces both the peak load and total system costs, and also flattens out the daily load profile of conventional generating units. Palacio et al. In preparation

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Page 48: Renewable Energy Integration: Technological and Market Design

Results IV: Structure of the SuperOPF

OBJECTIVE FUNCTION FOR DAILY OPERATIONS: Minimize the expected cost of meeting load, including the costs of load-not-served, reserves and ramping, for a set of credible system states over 24 hours subject to: 1) Network constraints, 2) Stochastic wind inputs, 3) Contingencies. DETERMINE THE OPTIMUM NODAL VALUES FOR: 1) Hourly dispatch profiles for generating units, 2) Amount of wind dispatched/spilled, 3) Amount of Load-Not-Served, 4) Up and down reserve capacity, 5) Amount of ramping, 6) Nodal energy prices, 7) Charging/discharging of deferrable demand, 8) Charging/discharging of collocated storage,

48

APPLIED TO: North East Test Network (NET Net)

Hot Summer Day

Page 49: Renewable Energy Integration: Technological and Market Design

Results V: Optimum Daily E[Pattern of Generation] for the NET Net

with and without Wind Capacity Installed

49

Case 1: Base Case 2: Base + 29GW Wind

Case 1: Ramping for the daily load profile is provided by oil and natural gas capacity. Case 2: Wind displaces mainly oil and natural gas capacity, but this conventional capacity provides the additional ramping services needed to mitigate the uncertainty of wind generation. Some wind is spilled.

Page 50: Renewable Energy Integration: Technological and Market Design

Results VI: Optimum Daily E[Pattern of Generation] for the NET Net

with Deferrable Demand or Collocated Storage

50

Case 3: Base + 29GW Wind + 33GWh Deferrable Demand

Case 4: Base + 29GW Wind + 33GWh Collocated Storage

Cases 3 & 4 v Case 2: More wind generation is dispatched and the daily dispatch profile of conventional generating units is flatter. Case 3 v Case 4: More wind generation is dispatched in Case 4 BUT the peak system load is lower in Case 3 less congestion on the grid and less utility-owned capacity needed to maintain System Adequacy lower capital costs lower bills for customers.

Page 51: Renewable Energy Integration: Technological and Market Design

Environmental Analysis (to be completed)

• Initially, fixed coefficients were used to link generator outputs and emission rates in the SuperOPF, but the emission coefficients for carbon are now being modified to depend on the generator types and operating conditions.

• Time-dependent and location-dependent damage coefficients are being developed to make it feasible to determine how dispatch patterns could be modified to reduce the severity of air pollution (e.g., ozone episodes).

• Using storage and/or deferrable demand may be effective ways to mitigate ozone episodes and increase social benefits by discharging more energy during critical periods when the damage coefficients of the precursor emissions are high (primarily NOx).

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Page 52: Renewable Energy Integration: Technological and Market Design

Potential Benefits

1) Provide a comprehensive analytical framework for evaluating how deferrable demand (electric vehicles and buildings with thermal storage) can affect the operations and costs of an electric delivery system

2) Demonstrate how deferrable demand can: • Flatten the daily dispatch pattern of conventional generators, • Mitigate the variability of wind generation, • Reduce ramping costs and maintain reliability, • Lower costs to customers, • Improve environmental quality (to be completed).

3) The software is open source, and when it is sufficiently robust, it will be added to the programs available with MATPOWER <http://www.pserc.cornell.edu/matpower/>.

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Publications 1. Lamadrid, Alberto; Wooyoung Jeon, and Tim Mount. The Effect of Stochastic Wind Generation on Ramping Costs and the System Benefits of Storage. Proceedings of the 46th IEEE HICSS Conference, Maui, HI, January 2013. 2. Jia, Liyan; Lang Tong and Tim Mount. Pricing and Competition for Large Scale Charging of Electric Vehicles. Proceedings of the 46th IEEE HICSS Conference, Maui, HI, January 2013. 3. Mount, Tim, Judy Cardell, Lindsay Anderson and Ray Zimmerman, Coupling Wind Generation with Controllable Load and Storage: A Time-Series Application of the SuperOPF, Final Project Report for Project M-22, PSERC Publication 12-29, Nov. 2012. 4. Valentine, K.; W. Temple, and K. M. Zhang. Electric Vehicle Charging and Wind Power Integration: Coupled or Decoupled Electricity Market Resources? Proceedings of the 2012 IEEE PES General Meeting, San Diego, CA, July, 2012. 5. Lamadrid, Alberto. Alternate Mechanisms for Integrating Renewable Sources of Energy into Electricity Markets. Proceedings of the 2012 IEEE PES General Meeting, 22 - 26 July 2012, San Diego, CA, July 22-26, 2012. 6. Lamadrid, Alberto; and Tim Mount. Ancillary Services in Systems with High penetrations of Renewable Energy Sources, the Case of Ramping. Energy Economics, 34:1959–1971, 2012. 7. Mount, Tim; and Alberto Lamadrid. Using Deferrable Demand to Increase Revenue Streams for Wind Generators. Proceedings of the 25th Annual CRRI Western Conference, Monterey CA, June 27-29, 2012. 8. Mount, Tim; Alberto Lamadrid, Wooyoung Jeon, and Hao Lu. Is Deferrable Demand an Effective Alternative to Upgrading Transmission Capacity? Proceedings of the 31st Annual CRRI Eastern Conference, Shawnee, PA, May 16-18, 2012. 9. Palacio, S.; K.; Valentine; M. Wong, K. M. Zhang. System-level price responsive ice storage systems. World Renewable Energy Forum, Denver, Colorado, May 2012. 10. Valentine, K.; W. Temple, and K. M. Zhang. Intelligent electric vehicle charging: Rethinking the valley fill. Journal of Power Sources, 196 (24): 10717-10726, 2011. 11. Mount, Timothy D.; Alberto J. Lamadrid, Surin Maneevitjit, Robert Thomas, and Ray Zimmerman. The Hidden System Costs of Wind Generation in a Deregulated Electricity Market. Journal of Energy Economics, 33 (1), 173-198, 2011. 12. Mount, Timothy D.; Alberto J. Lamadrid, Wooyoung Jeon, and K. M. Zhang. The Potential Benefits for Electricity Customers from Controllable Loads. Proceedings of the 24th Annual CRRI Western Conference, Monterey, CA, June 2011.

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Page 54: Renewable Energy Integration: Technological and Market Design

Task 4: Stochastic Simulation of Power Systems with Integrated

Variable Energy Resources

George Gross Alejandro Dominguez-Garcia

Yannick Degeilh University of Illinois

at Urbana-Champaign

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Page 55: Renewable Energy Integration: Technological and Market Design

THE NEED FOR A NEW SIMULATION APPROACH

Conventional probabilistic simulation cannot

capture the time-varying nature and the inter-

temporal effects that characterize storage and

renewable resources, nor the impacts of

transmission constraints on market outcomes

Moreover, the detailed representation of such

features is analytically intractable 55

Page 56: Renewable Energy Integration: Technological and Market Design

THE NEED FOR A NEW SIMULATION APPROACH

We developed a new, comprehensive simulation

approach using stochastic process representation

in a Monte Carlo framework

Our simulation approach is able to represent the

uncertainty in and time–varying nature of the

loads, renewable resource outputs and

conventional unit available capacities, as well as

the time-dependent transmission impacts 56

Page 57: Renewable Energy Integration: Technological and Market Design

THRUST OF THE SIMULATION APPROACH

We developed a comprehensive, computationally efficient Monte Carlo simulation approach to emulate the behavior of the power system with integrated storage and renewable energy resources

We model the system load and the resources by discrete-time stochastic processes

We use a storage scheduler to exploit arbitrage opportunities in the storage unit operations

We emulate the transmission-constrained hourly day-ahead markets (DAMs) to determine the power system operations in a competitive environment

57

Page 58: Renewable Energy Integration: Technological and Market Design

SIMULATION APPROACH: CONCEPTUAL STRUCTURE

“dri

ver”

stoc

hast

ic p

roce

sses

renewable power outputs

conventional generator available capacities

loads

storage

schedule

market

clearing

procedure

(DCOPF)

congestion rents

CO 2

emissions

storage

operations

. . .

“out

com

e” st

ocha

stic

pro

cess

es

LMPs

58

Page 59: Renewable Energy Integration: Technological and Market Design

THRUST OF THE APPROACH

We collect sample paths of the market outcome

stochastic processes to evaluate the expected

system variable effects

Metrics we evaluate include:

nodal electricity prices (LMPs)

generation by resource and revenues

congestion rents

CO 2 emissions

LOLP and EUE system reliability indices 59

Page 60: Renewable Energy Integration: Technological and Market Design

KEY CONTRIBUTIONS Development of an effective simulation approach

able to address power industry challenges

Salient features include:

quantification of the power system expected

variable effects – economics, reliability and

environmental impacts – in each sub-period

computationally tractable for practical

systems 60

Page 61: Renewable Energy Integration: Technological and Market Design

KEY CONTRIBUTIONS detailed stochastic models of the time–varying

resources and loads allow the representation of

spatial and temporal correlations

storage scheduler for optimized storage

operation to exploit arbitrage opportunities

representation of the transmission–

constrained market outcomes

flexibility in the representation of the market

environment/policies in effect 61

Page 62: Renewable Energy Integration: Technological and Market Design

APPLICATION AREAS Resource planning studies

year of commissioning of a wind farm or storage plant

siting of a storage unit transmission utilization under deepening

ADRR implementation Production costing issues

impacts of various penetration levels of wind and/or storage resources

impacts of increases in fossil fuel prices 62

Page 63: Renewable Energy Integration: Technological and Market Design

APPLICATION AREAS

Transmission utilization issues

impacts of renewable storage integration on

transmission utilization

identification of frequently-congested

transmission lines for use in the construction

of portfolios of financial transmission rights 63

Page 64: Renewable Energy Integration: Technological and Market Design

APPLICATION AREAS

Environmental assessments

identification of appropriate generation

resource mix composition to reduce CO2

emissions by x % by a specified point in time

wind and storage resource synergies in terms

of CO2 emission impacts 64

Page 65: Renewable Energy Integration: Technological and Market Design

APPLICATION AREAS Reliability analysis

assessment of the effective load carrying

capability of renewable resource additions

requirements

evaluation of the reserves in a power system

with deepening levels of renewable penetration 65

Page 66: Renewable Energy Integration: Technological and Market Design

APPLICATION AREAS Investment analysis

assessment of the expected returns of wind

resources investments

risk assessment of investing in deeper

penetration of renewable resources 66

Page 67: Renewable Energy Integration: Technological and Market Design

APPLICATION AREAS Policy formulation and analysis

incorporation of a ‘cap and trade’ carbon

market for the US

assessment of the impacts of a policy aimed at

providing financial incentives for the

retrofitting of old generation units 67

Page 68: Renewable Energy Integration: Technological and Market Design

APPLICATION AREAS Broad range of questions

sensitivity studies on storage sizing

selection of remuneration schemes for DRRs

scenario analysis of the impacts of future

technology developments

various what if questions 68

Page 69: Renewable Energy Integration: Technological and Market Design

CASE STUDY : DEEPENING WIND PENETRATION

The objective of this study is to perform a wind

penetration sensitivity analysis and to quantify

the enhanced ability to harness wind resources

with the addition of a storage energy resource

We evaluate the key metrics for variable effect

assessment, including wholesale purchase

payments, reliability indices and CO 2 emissions 69

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THE STUDY TEST SYSTEM: A MODIFIED IEEE 118-BUS SYSTEM

Annual peak load: 8,090.3 MW

Conventional generation resource mix: 9,714 MW

4 wind farms located in the Midwest with total

nameplate capacity in multiples of 680 MW

A storage unit with 400 MW capacity, 5,000 MWh

storage capability and 89 % round-trip efficiency

Unit commitment uses a 15 % reserves margin provi-

ded by conventional units and the storage resources

Wind power is assumed to be offered at 0 $/MWh

70

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NODE 80 AVERAGE HOURLY LMPs LM

P in

$/M

Wh

hour

0 MW 680 MW 1,360 MW

2,720 MW

2,040 MW

0 24 48 72 96 120 144 168 0

5

10

15

20

25

30

35

40

45

50 with storage without storage

wind nameplate capacity

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EXPECTED WHOLESALE PURCHASE PAYMENTS

thou

sand

$

100

110

120

130

140

150

160

170

180

- 5.

1 %

- 9.

1 %

- 17

.9 %

- 25

.2 %

- 31

.1 %

- 15

.4 %

- 24

.4 %

- 31

.2 %

- 36

.9 %

with storage without storage

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EXPECTED CO 2 EMISSIONS

- 5.

6 %

- 10

.5 %

- 14

.5 %

- 17

.5 %

- 6.

0 %

- 11

.8 %

- 16

.4 %

- 19

.8 %

0.70

0.75

0.80

0.85

0.90

0.95

1.00

1.05

+ 0

.3 %

thou

sand

met

ric

tons

with storage without storage

73

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ANNUAL RELIABILITY INDICES

EUE

6.24

0

1.04

2.08

3.12

4.16

5.20

0

2

4

6

8

10

12

x 10-4

- 37

.5 %

- 50

.0 %

- 65

.6 %

- 80

.1 %

- 43

.8 %

- 56

.3 %

- 67

.1 %

- 71

.9 %

- 87

.5 %

- 42

.5 %

- 73

.9 %

- 80

.2 %

- 64

.1 %

- 55

.1 %

- 90

.0 %

- 82

.4 %

- 73

.5 %

- 94

.3 %

14

LOLP

with storage without storage with storage without storage

MWh

74

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CONCLUDING REMARKS

Storage and wind resources consistently pair well

together: they reduce wholesale purchase dollars

and improve system reliability; storage seems to

attenuate the “diminishing returns” trend seen

with deeper wind power penetration

Additional studies are needed to evaluate the

impacts of multiple storage units on the power

system variable effects and the impacts of

storage siting and sizing 75

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REFERENCES Y. Degeilh and G. Gross, “Stochastic Simulation of

Power Systems with Integrated Intermittent Energy Resources,” under preparation for submission to the IEEE Transactions on Power Systems, 2013.

Y. Degeilh and G. Gross, “Simulation of Energy Storage Plants in Power Systems with Integrated Intermittent Energy Resources,” under preparation for submission to the IEEE Transactions on Power Systems, 2013.

Y. Degeilh, “Stochastic Simulation of Power Systems with Variable Energy Resources,” thesis to be submitted to the Department of Electrical and Computer Engineering, University of Illinois, Urbana, IL to fulfill the Ph. D. degree requirements, 2013.

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Contact Information

Shmuel Oren ([email protected]) Duncan Callaway ([email protected])

George Gross ([email protected]) Tim Mount ([email protected])

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